Analysts at Natixis explained that a normalisation of the ECB’s monetary policy would …
Key Quotes:
- Reduce corporate profits by 20%;
- Sharply weaken the fiscal solvency of the euro zone outside Germany;
- Probably lead to a sharp appreciation of the euro.
“Reduce household demand by transferring income from borrowing households to lending households.”
“These significant risks could lead the ECB to hesitate before normalising its monetary policy.”
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